BUSI 101 BU City of Porto Alegre Budgeting Discussion

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Accounting

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Benedictine University

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Business 101 – Benedictine University

Budgeting is necessary when individuals are attempting to balance their money. One of

the reasons, is because budgeting helps to set a plan, for much money should and should not be

spent. Moreover, budgeting also aids in practice, for future financial planning elements too.

Now, when it comes to budgeting, a strong example of the benefits that it can produce, is through

a case study that involves Brazil. What the goal of the study is, revolves around a participatory

budget, and explaining how it can be used to improve the budgeting and performance of the

prospective municipal client's business activities. As “the Beauty of Budgeting” says, when it

comes to budgeting, proper tools and guidelines must be implemented for financial success (p.1).

Now, while analyzing the case study, it is important to implement my own judgment as well.

The case study revolves around Porto Alegre's budgeting failure, due to lack of assembly

influence. For this reason, the influence of the assembly agenda, failed to bring in the proper

resources that were needed, for increasing the city budget. Now, the total population of Porto

Alegre is 1.5 million. However, according to Wikipedia, when it comes to the PB, about fifty

thousand residents are involved, which is about thirty percent of the population (p.1).

If every year there was a 25% turnover, allowing new people to join, that would

approximate about 37,000 people being introduced annually. When taking this into account,

after about ten years, the turnover rate would change. Instead, the rate that people would be

introduced annually to the budgeting, would be 370,000. This is implemented by calculating the

original turnover rate of 37,000 by ten. Even with this is mind, however, this would only be

twenty four percent of the population, which is an example of how much a community must

grow in time. Now, there are other sources to use, which also apply to the case as well. As

“City of Porto Alegre Brazil” says, the US budget for the case is 600 million (p.1). However, by

taking this and dividing by a population of 1.5, per case, the amount would be $400 each. This is

the average amount. Next, we must also consider that there are 16 regions as well. If one was to

divide this by the 600 million budgets, each region would get an even distribution of thirty-seven

million, five hundred thousand dollars. How, this may not add up entirely correctly, because of

other small expenses. Lastly as shown on page 6, the total cost of the program is 440,000. The

cost per participant is about 1400, since 440,000 would be divided by the 30.000 participants.

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Name Professor Class Due Date Business 101 – Benedictine University Budgeting is necessary when individuals are attempting to balance their money. One of the reasons, is because budgeting helps to set a plan, for much money should and should not be spent. Moreover, budgeting also aids in practice, for future financial planning elements too. Now, when it comes to budgeting, a strong example of the benefits that it can produce, is through a case study that involves Brazil. What the goal of the study is, revolves around a participatory budget, and explaining how it can be used to improve the budgeting and performance of the prospective municipal client's business activities. As “the Beauty of Budgeting” says, when it comes to budgeting, proper tools and guidelines must be implemented for financial success (p.1). Now, while analyzing the case study, it is important to implement my own ...
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Tags: Budgeting budgeting failure financial planning performance participatory budget